Financial Performance - Revenue for 2020 was $516,148 thousand, representing a 3.2% increase from $500,257 thousand in 2019[8] - Gross profit decreased by 30.8% to $82,140 thousand in 2020 from $118,763 thousand in 2019[8] - The company reported a net loss of $5,206 thousand for 2020, a decline of 123.6% compared to a profit of $22,069 thousand in 2019[8] - Adjusted EBITDA for 2020 was $21,544 thousand, down 58.3% from $51,620 thousand in 2019[8] - Adjusted net profit for 2020 was $8,979 thousand, a decrease of 78.1% from $40,951 thousand in 2019[8] - The company's revenue for the year ended December 31, 2020, increased by 3.2% to $516.1 million, compared to $500.3 million in 2019[27] - Mobile advertising revenue accounted for $515.5 million, which is 99.9% of total revenue, showing a growth of 3.0% compared to $500.3 million in 2019[40] - Revenue from the Mintegral platform reached $305.8 million, a significant increase of 105.4% year-over-year, while Nativex platform revenue decreased by 40.3% to $209.6 million[41] - The company reported a loss attributable to equity holders of $5.2 million for the year ended December 31, 2020, compared to a profit of $22.1 million in 2019[63] - Adjusted EBITDA was $21.5 million, a decrease of 58.3% compared to $51.6 million in 2019[65] Assets and Liabilities - Non-current assets increased to $102,062 thousand in 2020 from $67,353 thousand in 2019[7] - Current assets decreased to $395,544 thousand in 2020 from $444,132 thousand in 2019[7] - Current liabilities decreased to $220,574 thousand in 2020 from $238,998 thousand in 2019[7] - Total equity attributable to shareholders was $267,802 thousand in 2020, slightly up from $266,040 thousand in 2019[7] - The company’s total liabilities decreased from $245,445 thousand in 2019 to $229,804 thousand in 2020[7] - Total assets as of December 31, 2020, were $497.6 million, down from $511.5 million in 2019, while total liabilities decreased to $229.8 million from $245.4 million[67] - The debt-to-asset ratio improved to 46.2% from 48.0% in the previous year[67] Market and Business Strategy - Mintegral's advertising transaction volume increased by 105.4% in 2020 compared to 2019, reaching a historical high since its launch in 2015[10] - The company plans to proactively disclose Mintegral's core operating data for Q1 2021 in April[11] - The company aims to expand its market presence by continuously iterating and developing new products based on the needs of mobile app developers[15] - The company is transitioning towards a programmatic business model centered around the Mintegral platform, while gradually exiting the media agency and non-programmatic advertising businesses[28] - The company anticipates continued growth in its programmatic advertising business, supported by strong technology and commercial foundations[43] Customer and Market Engagement - Approximately 80% of traffic publishers that paused cooperation due to negative publicity have resumed collaboration[11] - The number of unique players tracked by the GameAnalytics platform reached 1.94 billion per month, representing a year-on-year growth of over 60%[12] - Mintegral platform customer retention rate reached 82.3% in H2 2020, down from 91.3% in H1 2020, while customer count increased by 43.7%[30] - The number of traffic developers on the Mintegral platform grew to 5,071, a 21.5% increase from H1 2020, with a retention rate of 78.0%[30] Research and Development - Research and development expenses decreased by 9.4% to $31.9 million for the year ended December 31, 2020, down from $35.2 million in 2019; combined R&D expenses totaled $53.1 million, an increase of 13.3% year-over-year[57] - Capital expenditures increased by 193.9% to $35.7 million, primarily due to increased capitalization of R&D expenses[70] Corporate Governance - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[144] - The company has adhered to the corporate governance code provisions applicable for the year ended December 31, 2020, except for the separation of roles between the chairman and CEO, which was not followed during the reporting period[142] - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to oversee specific areas[143] - The company emphasizes board diversity, with independent non-executive directors representing over one-third of the board, bringing varied industry backgrounds[145] Risk Management and Compliance - The company has established a risk management system to identify and assess risks that may negatively impact achieving business objectives[169] - The board is responsible for ensuring effective risk management and internal control systems are in place, providing reasonable assurance against material misstatements or losses[168] - The company has implemented monitoring procedures to prevent unauthorized access and use of internal information, ensuring compliance with disclosure policies[171] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental protection and has implemented measures to reduce energy consumption and waste[135] - The company has established an ESG working group to enhance governance and management systems related to ESG matters, focusing on continuous improvement and stakeholder engagement[181] - The ESG report for the year ended December 31, 2020, was prepared in accordance with the guidelines set out in the listing rules, ensuring objectivity and consistency in data calculation methods[179] Employee and Shareholder Relations - The company has a total rental area of approximately 5,339 square meters under lease agreements with related parties[126] - The company has not made any changes to its articles of association for the year ended December 31, 2020[177] - The company encourages directors to seek independent professional advice at its expense[151]
汇量科技(01860) - 2020 - 年度财报